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The Wealth of Nations: II

The Wealth of Nations
II
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table of contents
  1. Titlepage
  2. Imprint
  3. Editor’s Introduction
  4. Introduction and Plan of the Work
  5. The Wealth of Nations
    1. Book I
      1. I: Of the Division of Labour
      2. II: Of the Principle Which Gives Occasion to the Division of Labour
      3. III: That the Division of Labour Is Limited by the Extent of the Market
      4. IV: Of the Origin and Use of Money
      5. V: Of the Real and Nominal Price of Commodities, or of Their Price in Labour, and Their Price in Money
      6. VI: Of the Component Parts of the Price of Commodities
      7. VII: Of the Natural and Market Price of Commodities
      8. VIII: Of the Wages of Labour
      9. IX: Of the Profits of Stock
      10. X: Of Wages and Profit in the Different Employments of Labour and Stock
        1. I: Inequalities Arising from the Nature of the Employments Themselves
        2. II: Inequalities Occasioned by the Policy of Europe
      11. XI: Of the Rent of Land
        1. I: Of the Produce of Land Which Always Affords Rent
        2. II: Of the Produce of Land Which Sometimes Does, and Sometimes Does Not, Afford Rent
        3. III: Of the Variations in the Proportion Between the Respective Values of That Sort of Produce Which Always Affords Rent, and of That Which Sometimes Does and Sometimes Does Not Afford Rent
          1. Digression Concerning the Variations in the Value of Silver During the Course of the Four Last Centuries
            1. First Period
            2. Second Period
            3. Third Period
            4. Variations in the Proportion Between the Respective Values of Gold and Silver
            5. Grounds of the Suspicion That the Value of Silver Still Continues to Decrease
            6. Different Effects of the Progress of Improvement Upon Three Different Sorts of Rude Produce
              1. First Sort
              2. Second Sort
              3. Third Sort
            7. Conclusion of the Digression Concerning the Variations in the Value of Silver
          2. Effects of the Progress of Improvement Upon the Real Price of Manufactures
        4. Conclusion of the Chapter
    2. Book II
      1. Introduction
      2. I: Of the Division of Stock
      3. II: Of Money Considered as a Particular Branch of the General Stock of the Society, or of the Expense of Maintaining the National Capital
      4. III: Of the Accumulation of Capital, or of Productive and Unproductive Labour
      5. IV: Of Stock Lent at Interest
      6. V: Of the Different Employment of Capitals
    3. Book III
      1. I: Of the Natural Progress of Opulence
      2. II: Of the Discouragement of Agriculture in the Ancient State of Europe After the Fall of the Roman Empire
      3. III: Of the Rise and Progress of Cities and Towns, After the Fall of the Roman Empire
      4. IV: How the Commerce of the Towns Contributed to the Improvement of the Country
    4. Book IV
      1. Introduction
      2. I: Of the Principle of the Commercial or Mercantile System
      3. II: Of Restraints Upon the Importation from Foreign Countries of Such Goods as Can Be Produced at Home
      4. III: Of the Extraordinary Restraints Upon the Importation of Goods of Almost All Kinds, from Those Countries with Which the Balance Is Supposed to Be Disadvantageous
        1. I: Of the Unreasonableness of Those Restraints Even Upon the Principles of the Commercial System
          1. Digression Concerning Banks of Deposit, Particularly Concerning That of Amsterdam
        2. II: Of the Unreasonableness of Those Extraordinary Restraints Upon Other Principles
      5. IV: Of Drawbacks
      6. V: Of Bounties
        1. Digression Concerning the Corn Trade and Corn Laws
      7. VI: Of Treaties of Commerce
      8. VII: Of Colonies
        1. I: Of the Motives for Establishing New Colonies
        2. II: Causes of the Prosperity of New Colonies
        3. III: Of the Advantages Which Europe Has Derived from the Discovery of America, and from That of a Passage to the East Indies by the Cape of Good Hope
      9. VIII: Conclusion of the Mercantile System
      10. IX: Of the Agricultural Systems, or of Those Systems of Political Œconomy, Which Represent the Produce of Land as Either the Sole or the Principal Source of the Revenue and Wealth of Every Country
    5. Book V
      1. I: Of the Expenses of the Sovereign or Commonwealth
        1. I: Of the Expense of Defence
        2. II: Of the Expense of Justice
        3. III: Of the Expense of Public Works and Public Institutions
          1. Article I: Of the Public Works and Institutions for Facilitating the Commerce of the Society
            1. And, First, of Those Which Are Necessary for Facilitating Commerce in General
            2. Of the Public Works and Institutions Which Are Necessary for Facilitating Particular Branches of Commerce
          2. Article II: Of the Expense of the Institutions for the Education of Youth
          3. Article III: Of the Expense of the Institutions for the Instruction of People of All Ages
        4. IV: Of the Expense of Supporting the Dignity of the Sovereign
        5. Conclusion
      2. II: Of the Sources of the General or Public Revenue of the Society
        1. I: Of the Funds or Sources of Revenue Which May Peculiarly Belong to the Sovereign or Commonwealth
        2. II: Of Taxes
          1. Article I
            1. Taxes Upon Rent; Taxes Upon the Rent of Land
            2. Taxes Which Are Proportioned, Not to the Rent, but to the Produce of Land
            3. Taxes Upon the Rent of Houses
          2. Article II
            1. Taxes Upon Profit, or Upon the Revenue Arising from Stock
            2. Taxes Upon the Profit of Particular Employments
          3. Appendix to Articles I and II
          4. Article III: Taxes Upon the Wages of Labour
          5. Article IV: Taxes Which, It Is Intended, Should Fall Indifferently Upon Every Different Species of Revenue
            1. Capitation Taxes
            2. Taxes Upon Consumable Commodities
      3. III: Of Public Debts
  6. Appendix
  7. Endnotes 1–500
  8. Endnotes 501–1,000
  9. Endnotes 1,001–1,500
  10. Endnotes 1,501–1,647
  11. Colophon
  12. Uncopyright

II

Of the Principle Which Gives Occasion to the Division of Labour

This division of labour, from which so many advantages are derived, is not originally the effect of any human wisdom, which foresees and intends that general opulence to which it gives occasion.137 It is the necessary, though very slow and gradual, consequence of a certain propensity in human nature which has in view no such extensive utility; the propensity to truck, barter, and exchange one thing for another.

Whether this propensity be one of those original principles in human nature, of which no further account can be given; or whether, as seems more probable, it be the necessary consequence of the faculties of reason and speech, it belongs not to our present subject to enquire. It is common to all men, and to be found in no other race of animals, which seem to know neither this nor any other species of contracts. Two greyhounds, in running down the same hare, have sometimes the appearance of acting in some sort of concert. Each turns her towards his companion, or endeavours to intercept her when his companion turns her towards himself. This, however, is not the effect of any contract, but of the accidental concurrence of their passions in the same object at that particular time. Nobody ever saw a dog make a fair and deliberate exchange of one bone for another with another dog.138 Nobody ever saw one animal by its gestures and natural cries signify to another, this is mine, that yours; I am willing to give this for that. When an animal wants to obtain something either of a man or of another animal, it has no other means of persuasion but to gain the favour of those whose service it requires. A puppy fawns upon its dam, and a spaniel endeavours by a thousand attractions to engage the attention of its master who is at dinner, when it wants to be fed by him. Man sometimes uses the same arts with his brethren, and when he has no other means of engaging them to act according to his inclinations, endeavours by every servile and fawning attention to obtain their good will. He has not time, however, to do this upon every occasion. In civilized society he stands at all times in need of the cooperation and assistance of great multitudes, while his whole life is scarce sufficient to gain the friendship of a few persons. In almost every other race of animals each individual, when it is grown up to maturity, is entirely139 independent, and in its natural state has occasion for the assistance of no other living creature. But man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only. He will be more likely to prevail if he can interest their self-love in his favour, and show them that it is for their own advantage to do for him what he requires of them. Whoever offers to another a bargain of any kind, proposes to do this: Give me that which I want, and you shall have this which you want, is the meaning of every such offer; and it is in this manner that we obtain from one another the far greater part of those good offices which we stand in need of. It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages. Nobody but a beggar chooses to depend chiefly upon the benevolence of his fellow-citizens. Even a beggar does not depend upon it entirely. The charity of well-disposed people, indeed, supplies him with the whole fund of his subsistence. But though this principle ultimately provides him with all the necessaries of life which he has occasion for, it neither does nor can provide him with them as he has occasion for them. The greater part of his occasional wants are supplied in the same manner as those of other people, by treaty, by barter, and by purchase. With the money which one man gives him he purchases food. The old clothes which another bestows upon him he exchanges for other old clothes which suit him better, or for lodging, or for food, or for money, with which he can buy either food, clothes, or lodging, as he has occasion.140

As it is by treaty, by barter, and by purchase, that we obtain from one another the greater part of those mutual good offices which we stand in need of, so it is this same trucking disposition which originally gives occasion to the division of labour. In a tribe of hunters or shepherds a particular person makes bows and arrows, for example, with more readiness and dexterity than any other. He frequently exchanges them for cattle or for venison with his companions; and he finds at last that he can in this manner get more cattle and venison, than if he himself went to the field to catch them. From a regard to his own interest, therefore, the making of bows and arrows grows to be his chief business, and he becomes a sort of armourer. Another excels in making the frames and covers of their little huts or moveable houses. He is accustomed to be of use in this way to his neighbours, who reward him in the same manner with cattle and with venison, till at last he finds it his interest to dedicate himself entirely to this employment, and to become a sort of house-carpenter. In the same manner a third becomes a smith or a brazier; a fourth a tanner or dresser of hides or skins, the principal part of the clothing of savages. And thus the certainty of being able to exchange all that surplus part of the produce of his own labour, which is over and above his own consumption, for such parts of the produce of other men’s labour as he may have occasion for, encourages every man to apply himself to a particular occupation, and to cultivate and bring to perfection whatever talent or genius he may possess for that particular species of business.141

The difference of natural talents in different men is, in reality, much less than we are aware of; and the very different genius which appears to distinguish men of different professions, when grown up to maturity, is not upon many occasions so much the cause, as the effect of the division of labour.142 The difference between the most dissimilar characters, between a philosopher and a common street porter, for example, seems to arise not so much from nature, as from habit, custom, and education. When they came into the world, and for the first six or eight years of their existence, they were, perhaps,143 very much alike, and neither their parents nor playfellows could perceive any remarkable difference. About that age, or soon after, they come to be employed in very different occupations. The difference of talents comes then to be taken notice of, and widens by degrees, till at last the vanity of the philosopher is willing to acknowledge scarce any resemblance. But without the disposition to truck, barter, and exchange, every man must have procured to himself every necessary and conveniency of life which he wanted. All must have had the same duties to perform, and the same work to do, and there could have been no such difference of employment as could alone give occasion to any great difference of talents.144

As it is this disposition which forms that difference of talents, so remarkable among men of different professions, so it is this same disposition which renders that difference useful. Many tribes of animals acknowledged to be all of the same species, derive from nature a much more remarkable distinction of genius, than what, antecedent to custom and education, appears to take place among men. By nature a philosopher is not in genius and disposition half so different from a street porter, as a mastiff is from a greyhound, or a greyhound from a spaniel, or this last from a shepherd’s dog. Those different tribes of animals, however, though all of the same species, are of scarce any use to one another. The strength of the mastiff is not in the least supported either by the swiftness of the greyhound, or by the sagacity of the spaniel, or by the docility of the shepherd’s dog. The effects of those different geniuses and talents, for want of the power or disposition to barter and exchange, cannot be brought into a common stock, and do not in the least contribute to the better accommodation and conveniency of the species. Each animal is still obliged to support and defend itself, separately and independently, and derives no sort of advantage from that variety of talents with which nature has distinguished its fellows. Among men, on the contrary, the most dissimilar geniuses are of use to one another; the different produces of their respective talents, by the general disposition to truck, barter, and exchange, being brought, as it were, into a common stock, where every man may purchase whatever part of the produce of other men’s talents he has occasion for.

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